Empirical Study on the Effects of Chinese Companies' Overseas MA

摘要

This paper analyzed the wealth effects and financial performance of 28 overseas M&A undertaken by Chinese listed companies between 2000 and 2005. The results suggest that the Chinese companies suffered a significant negative CAR of about-4.924% during the whole event window which indicates that overseas acquisitions in China did destroy shareholder wealth.In addition, the results of accounting-based measures show that Chinese companies haven't improved their financial performance through overseas M&A Based on the empirical study this paper considers that overseas M&A have a negative effect on the performance of Chinese listed companies.